The Federal Reserve’s preferred inflation gauge cooled more than expected but remained elevated well above target in August as consumers continued to face price pressures.
The Commerce Department on Wednesday reported that the personal consumption expenditures (PCE) index rose 0.3% on a monthly basis in August and was up 3.4% from a year ago. Both figures were cooler than the expectations of economists polled by LSEG, who predicted 0.4% and 3.7%, respectively.
Core PCE, which excludes volatile measurements of food and energy prices, was up 0.2% on a monthly basis and 3% year over year. Both figures were cooler than economists’ expectations of 0.3% and 3.3%, respectively.
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